“It has been a true honor to serve Oregon as Chancellor
for more than eight years,” Pernsteiner said, according to the release. “It
has been a gratifying experience to work with faculty, staff, student
leaders, board members and state officials to help improve the lives of
Oregonians. I very much look forward to continuing to make that happen
over the next couple of months and into the future.”

Matt Donegan, president of the Oregon State Board of Higher Education, said in a statement: "George
leaves the university system well positioned, having reached record
enrollment and degree attainment at a time when higher education has
never been of greater importance to Oregon’s economy."

Generally,
the chancellor has authority over the system's presidents and his office
is tasked with orchestrating and monitoring how the universities carry
out board policies and goals.

The
office also works in a variety of other areas -- enrollment research,
retention, long-range planning, performance review, and keeping the
books on the system's finances.

But
during Pernsteiner’s time in the position, the role of the chancellor
underwent some significant changes and he saw his office shrink, even as
enrollment grew.

Between
2000 and 2011, the number of faculty and students grew by one-third and
yet the chancellor's office lost half its staff and 78 percent of its
funding.

Even further cuts seemed to be in the books.

In
his 2013-15 budget proposal, Gov. John Kitzhaber floated the idea of creating a
Department of Post-Secondary Education, which would control funding for the state's seven public universities, 17 community
colleges, need-based college scholarships and Oregon Health &
Science University.

If the plan succeeds it will come at the expense of the chancellor's office.

At
the time the budget was released, Pernsteiner told The Oregonian the
plan made a lot of sense, however, and heralded its potential to improve
the higher education landscape for Oregon students.

"This could provide an integrated approach to funding student success," he said.

Pernsteiner's
resignation comes less than a year after the Oregon Board of Higher
Education voted to extend his contract through June 2014 and just a few
months after the board increased his annual salary to $289,332.

Pernsteiner
also received a $26,000 housing stipend and a $23,000 personal services stipend.